Learn and study the Fundamental Analysis

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Fundamental Analysis pertaining to Economic Events
To some extent, Economic events tend to move markets. Both “Buy” and “Sell” side cares on how and when the market will move to make their investment decisions.
In THEORY, information should be available to all market participants “at the same time”. But for the sake of knowledge, let’s assume that the all market participants receive all information real time.
Please take note that Economic Theories don’t move the market by themselves. Some traders and speculators use this real time information to formulate investment strategies, time their trades and use “Market Volatility” to make bets.
Classification of Economic Events
1. Economic News
- Tends to be news based and more SUBJECTIVE
- Example of these are Central Bank Governor Speeches and Economic Press Conference
2. Economic Indicators
- OBJECTIVE and generally have some numerical presentation
- Example are GDP, Inflation and Employment Data
Remember that Fundamental Analysis is one of the 3 types of analysis (Technical and Sentiment are the other two). These doesn’t equate that if you know Fundamental Analysis alone, you’re already good with the market.
These aren’t always accurate. We also need to take into consideration that there are other events in the world which drive the prices such as;
- Other big news (Geopolitical Tensions, Trade Wars, Terrorism)
- Conflicting News/Data
- Industry News
- Security Specific News
FX and Fixed Income Markets have a tendency to react more quickly to economic News. Equity is dependent of companies and specific industry. Commodity Markets are highly dependent on geopolitical and other events.
In the end, there are so many ways to earn in the Financial Market. The only thing that we need to do is to find where we can excel and master that craft.

Download this PDF file about Fundamental Analysis so you will learn about more about FX economics and how the market moves.. GOOD LUCK!!

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STEPS OF FUNDAMENTAL TRADING

( FIRST )
you should do start by getting OVERVIEW of the market

you can check it here:
1.Fxstreet.com
2.Dailyfx.com
3.Bloomberg currencies
4.Centralbank.com
5.Forexfactory economic calendar
6.forexlive
7.Tradingeconomics
etc...

( SECOND )
Identify the main cause of yesterday's PRICE move and the main cause of yesterday SENTIMENT

( THIRD )
Identify the cause of the market sentiment for the most RECENT session. check what is the market doing now, if the market is rising or decreasing.

( FOURTH )
Identify what the market is doing since the open of the CURRENT session, has anything happen to impact sentiment,then you have to act yourself visit the news site to find out what causing current market sentiment.

( FIFTH )
Any Fundamental announcement come out worst than expected OR better than expected significant.

Then check how does this news compare to the overall FUNDAMENTAL outlook of the currency,

for example you are trading Australian dollar and over all outlook of the currency is BEARISH because they have talks about decreasing interest rates or bad CPI data which means overall outlook for the currency is bearish,this will be excellent oppotunity to SELL Australian dollar

Whenever FUNDAMENTAL announcement
come out in line with the over all outlook for the currency that's an excellent TRADING OPPORTUNITY,

( SIXTH )
are there any up coming FUNDAMENTAL announcements????
As a FUNDAMENTAL TRADER always be aware on economic calendar or other good souce of FX news

( SEVENTH )
Is the News strong enough to cause increase market volatililty.think yourself first is this FUNDAMENTAL announcement significant enough to cause increase Market volatility.

 

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Hawkish and Dovish meaning

STEPS OF FUNDAMENTAL TRADING

( FIRST )
you should do start by getting OVERVIEW of the market

you can check it here:
1.Fxstreet.com
2.Dailyfx.com
3.Bloomberg currencies
4.Centralbank.com
5.Forexfactory economic calendar
6.forexlive
7.Tradingeconomics
etc...

( SECOND )
Identify the main cause of yesterday's PRICE move and the main cause of yesterday SENTIMENT

( THIRD )
Identify the cause of the market sentiment for the most RECENT session. check what is the market doing now, if the market is rising or decreasing.

( FOURTH )
Identify what the market is doing since the open of the CURRENT session, has anything happen to impact sentiment,then you have to act yourself visit the news site to find out what causing current market sentiment.

( FIFTH )
Any Fundamental announcement come out worst than expected OR better than expected significant.

Then check how does this news compare to the overall FUNDAMENTAL outlook of the currency,

for example you are trading Australian dollar and over all outlook of the currency is BEARISH because they have talks about decreasing interest rates or bad CPI data which means overall outlook for the currency is bearish,this will be excellent oppotunity to SELL Australian dollar

Whenever FUNDAMENTAL announcement
come out in line with the over all outlook for the currency that's an excellent TRADING OPPORTUNITY,

( SIXTH )
are there any up coming FUNDAMENTAL announcements????
As a FUNDAMENTAL TRADER always be aware on economic calendar or other good souce of FX news

( SEVENTH )
Is the News strong enough to cause increase market volatililty.think yourself first is this FUNDAMENTAL announcement significant enough to cause increase Market volatility.

 

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Watch this video The Ultimate Guide of Risk Sentiment.

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How to analyze and trade the news.

Go to forex factory.com

1.Click calendar

2.Click the time on the upper left side you will directed to the time zone settings.

3.Go and select your country

4.Once you have been selected your country just click save settings.

5.Then automatically your time will be the same.

6.Then go back to calendar

7.Once you come to calendar the second thing that you gonna do is go to filter, click the green upper right.

8.Just unclick the yellow folder ONLY and leave all the tick boxes, because that news are low impact No volatility on the market. then click APPLY FILTER.

9.The first thing you gonna do is check the time because you will be expecting a lot of volatility.

10.Check the VALUE NUMBER of the previous month, check the FORECAST NUMBER base on economic models or predicted values, when the news are happening at that time what you actually looking for is the ACTUAL FORECAST NUMBER,
if the ACTUAL FORECAST is lower than the forecast you will see a red numbers which means they have a negative impact on the currency. BUT if its greater you will see a green numbers if you go over the market you will see a red envelope and check what kind of news was that,then analyze your trading chart on a daily time frame down to h4 time frame using the TECHNICAL ANALYSIS, if its over bought on RESISTANCE LEVEL or over sold on SUPPORT LEVEL
double check the currency meter what currency was weak so you can pair that currency on the high impact news. if you are not sure what's happening better is stay away on that base currency.


11.If you see there is a red envelope and no indicating numbers on ACTUAL NUMBER FORECAST click the envelope on the right side and read the text on WHAT TREADERS CARE they give you an information if HAWKISH ( bullish ) or DOVISH ( bearish ) base on a text result.


12.To analyze this NEWS more deeply and there is No ACTUAL FORECAST NUMBER on that base currency example ( AUD )


13.Go to TRADING ECONOMICS WEBSITE
inside the trading economics click the INDICATORS and look for AUSTRALIA you can even check any country there, when you are directed to AUSTRALIA ECONOMIC INDICATORS you will see an over view go to the right side then check the particular news the one was posted in FOREX FACTORY CALENDAR for example EMPLOYMENT CHANGE so click the right side and CLICK LABOUR AND CLICK EMPLOYMENT CHANGE. ( you can also check the GDP, CPI , PRICES )


14 After you click the employment change you can read what they are forecast or what they are planning to do, scroll down you can see on the date and news was posted on the forex factory if you can't read anything there even the forecast scroll more down and find any information, if can't find any information click the forecast.
Now you have an idea the projection what is happening on that news read also the relevant article. you can use that information in terms of projecting and give you a concrete information and how you TRADE that currency.


15.ALWAYS CHECK TRADING ECONOMICS WEBSITE before any news release to have an idea in terms of what might happened in the market. always check the forecast and the graph indication of prediction of the market, then analyze your trading chart where you place your stoploss and take profit..

 

[colozus23]

How I start my day in trading? A quick guide to start your daily analysis.

1. Market Wrap or Opening News - This will give you an overview of the market. What happened in the last session and what is currently moving the market

2. Intermarket Analysis – Check Equities and Equity Futures, Commodities, Bonds to have a quick look whether the market is moving on risk off or risk on.

3. Economic Calendar – This will show you any upcoming event that might move the market. Make sure to know the current expectation and plan out potential trading opportunities before the event

4. Sentiment Driver – Check on what is the focus of the market. This will give you highest probability trade base on the sentiment that is driving the market
.
5. Additional Analysis and Research - Read research and analysis on various sources or websites like Reuters, Forex live, Bloomberg, Investing.com, Daily FX etc.

6. Chart Analysis – This will give the best entries base on your Technical analysis

 

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Download this pdf file about Day trading and Swing trading by: Kathy Lien

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